Home Appreciation Loan Frequently Asked Questions

 

 

Equity is the value of your home less any money owing on it such as a mortgage or loan.

 

 

We’ll pay all the normal costs of setting up your loan. You must pay any fees higher than our normal limits and any fees for extra legal work. These fees can be added to the loan so long as you have enough equity.

 

 

The most you can borrow is the amount needed to repair or improve your home. The amount we lend you will take account of any other debts you have already secured on your home, and on the value of your home. We’ll make sure wherever possible that your total secured debt, including our loan, leaves you with a reasonable amount of equity.

 

Usually we’ll lend no more than £30,000, up to half of the value of your home.  However, we’ll always look at your circumstances to decide how much your loan should be.

 

 

No, the money will be paid to your chosen contractor when we’re happy that they have finished the work to an acceptable standard.

 

 

We use a qualified independent valuer to assess your home’s market value.

 

 

The amount you’ll have to repay is based on the new value of your home. However, we set a limit to the amount you will repay if property values increase at an exceptional rate.

 

 

If this happens, the most you’ll pay back is the original loan amount. If the full repayment will cause you extreme financial problems we may reduce this amount.

 

We have a no negative equity guarantee. This means that you or your beneficiaries will not have to repay more than your home is worth.

 

 

No, interest is not charged on this loan.

 

 

Yes, you can repay the loan in full at any time. We’ll arrange an independent valuation and work out how much you should repay in the same way described in the paying back the loan section of this booklet. 

 

 

Yes, your home must be covered by building insurance.

 

 

Yes, but you must repay the loan when you sell your home.

 

 

Yes, we recommend that you get independent professional advice to help you decide if this is the best solution for you.

 

 

You should discuss this with your family.  We can meet with you and your family to explain the loan. 

 

 

We’ll consider you for a loan if you have enough equity in your home. Your lender must give permission for us to register our legal charge.

 

 

If you have any other questions that have not been answered, please contact your Local Authority directly who will be able to help.